Comparative financial statements for Weller Corporation, a merchandising company, for the year ending December 31 appear below. The company did not issue any new common stock during the year. A total of 600,000 shares of commo stock were outstanding. The interest rate on the bond payable was 10%, the income tax rate was 40%, and the dividend per share of common stock was $0.75 last year and $0.40 this year. The market value of the company's common stock the end of the year was $28. All of the company's sales are on account. Weller Corporation Comparative Balance Sheet (dollars in thousands) This Year Last Year $ 1,150 10,500 12,800 740 25, 190 $ 1,270 8,500 11,600 650 22,020 9,700 53,378 63,078 $88,268 9,700 38,420 48, 120 $70,140 Assets Current assets: Cash Accounts receivable, net Inventory Prepaid expenses Total current assets Property and equipment: Land Buildings and equipment, net Total property and equipment Total assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable Accrued liabilities Notes payable, short term Total current liabilities Long-term liabilities: Bonds payable Total liabilities Stockholders' equity: Common stock Additional paid-in capital $20,100 950 $17,800 800 130 18,730 130 21,180 9,500 30,680 9,500 28,230 600 4.000 600 4.000 Retained earnings Total stockholders' equity Total liabilities and stockholders' equity 52,988 57,588 $88,268 31,310 41,910 $70, 140 Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Last Year Sales $89,300 $66,000 Cost of goods sold 43,920 37,000 Gross margin 45, 380 29,000 Selling and administrative expenses: Selling expenses 11,100 10,700 Administrative expenses 6,800 6,400 Total selling and administrative expenses 17,900 17,100 Net operating income 27,480 11,900 Interest expense 950 Net income before taxes 26,530 10,950 Income taxes 10,612 4,380 Net income 15,918 6,570 Dividends to common stockholders 240 600 Net income added to retained earnings 15,678 5,970 Beginning retained earnings 37,310 31,340 Ending retained earnings $52,988 $37,310 950 Required: Compute the following financial data for this year: . Accounts receivable turnover. (Assume that all sales are on account.) (Round your answer to 2 decimal places.) 2. Average collection period. (Use 365 days in a year. Round your intermediate calculations and final answer to 2 decimal places.) 3. Inventory turnover. (Round your answer to 2 decimal places.) Required: Compute the following financial data for this year: 1. Accounts receivable turnover. (Assume that all sales are on account.) (Round your answer to 2 decimal places.) 2. Average collection period. (Use 365 days in a year. Round your intermediate calculations and final answer to 2 decimal places.) 3. Inventory turnover. (Round your answer to 2 decimal places.) 4. Average sale period. (Use 365 days in a year. Round your intermediate calculations and final answer to 2 decimal places.) 5. Operating cycle. (Round your intermediate calculations and final answer to 2 decimal places.) 6. Total asset turnover. (Round your answer to 2 decimal places.) Answer is not complete. 1. 2. days 3. Accounts receivable turnover Average collection period Inventory turnover Average sale period Operating cycle 1.80 X 202.78 X 4. days days 5. 6. Total asset turnover
